Table of Contents
1. Objective & Features of the Startup India Seed Fund Scheme
2. How to Apply for the Startup India Seed Fund Scheme? - Step-by-Step Application Process
3. Benefits of the Startup India Seed Fund Scheme
4. Eligibility Criteria for Applying
5. Documents Required for Applying to SISFS
6. FAQs
The Startup India Seed Fund Scheme (SISFS) is a flagship initiative launched by the Government of India to provide critical financial assistance to startups at the early stages of their growth. This scheme is pivotal in fostering innovation and entrepreneurship nationwide, particularly by providing seed funding to startups that need support to transform their ideas into viable business ventures.
Objective & Features of the Startup India Seed Fund Scheme
The primary objective of the SISFS is to provide financial support to startups for proof of concept, prototype development, product trials, market-entry, and commercialization. By doing so, the scheme helps startups achieve the necessary milestones to attract further investments from angel investors and venture capitalists or secure loans from commercial banks.
Key features of the SISFS include:
- Year-round ‘Call for Applications’: Startups can apply anytime during the year.
- Sector-agnostic: The scheme is open to startups across various sectors.
- No mandatory physical incubation: Startups are not required to be physically incubated at a specific location.
- PAN-India coverage: The scheme is available to startups across all regions of India.
How to Apply for the Startup India Seed Fund Scheme? - Step-by-Step Application Process
Applying for the SISFS is a straightforward process that is conducted entirely online. Here’s how you can apply:
-
Login to the Startup India Portal: Startups must first log in using their DPIIT-recognized credentials on the Startup India Portal.
-
Select Incubators: Startups can choose up to three incubators where they wish to receive seed funding.
-
Submit the Application Form: The application requires details such as the team profile, problem statement, business model, market size, and a fund utilization plan.
-
Evaluation and Selection: The incubators’ Seed Management Committee (ISMC) evaluates the applications. If approved, the startup receives the seed fund.
Benefits of the Startup India Seed Fund Scheme
The SISFS offers significant benefits to startups, including:
- Up to ?20 lakhs as a grant for validation of proof of concept, prototype development, or product trials.
- Up to ?50 lakhs for market entry, commercialization, or scaling up.
These funds are disbursed in milestone-based installments, ensuring the startup progresses effectively toward its goals.
Eligibility Criteria for Applying
To apply for the SISFS, a startup must meet the following criteria:
- Recognized by DPIIT.
- Incorporated not more than 2 years ago.
- The startup should have a business idea involving product or service development and a viable commercialization plan.
- Preference is given to startups in social impact, waste management, healthcare, and more.
Documents Required for Applying to SISFS
The application process requires submitting several documents, including:
- Board resolution/Authorization Letter/Power of Attorney (PoA)
- PAN Card
- GST number
- Aadhaar Card
- Bank account details
- Certificate of incorporation/partnership deed
- Financial statements
- A video describing the startup’s product, service, or business model
FAQs
What is seed funding in startups?
Seed funding is the initial capital used to start a business. It helps cover early-stage expenses such as product development, market research, and initial operations.
Is seed funding risky?
Yes, it is risky because it is provided at the very early stages of a startup, often before the product or service has been fully developed.
How can a startup get seed money?
Startups can apply for seed funding through government schemes like SISFS, angel investors, and venture capital firms.
What is the limit of seed fund?
Under the SISFS, startups can receive up to ?50 lakhs for market entry, commercialization, or scaling up.
Who can apply to SISFS?
Any DPIIT-recognized startup that was incorporated within the last 2 years and meets the eligibility criteria can apply for the SISFS.
Conclusion
The Startup India Seed Fund Scheme is an essential initiative for early-stage startups in India. It offers the financial support necessary to turn innovative ideas into successful businesses. ADCA can assist you in navigating the application process and ensure you maximize the benefits available under this scheme. For more detailed guidance and support, visit ADCA’s official website.
